Health-Care Scammer Ordered to Pay $46.7 Million in Restitution

One of eight defendants charged in a years-long no-fault insurance scam was ordered to pay $46.7 million in restitution to 13 insurance companies that unwittingly paid for medical care provided at clinics owned by non-physicians.

Roman Israilov, one of the clinic controllers, argued that the restitution should be reduced to reflect payments for treatment that was medically necessary. The US District Court for the Southern District of New York disagreed.

Under New York law, insurance companies don’t have to reimburse claims submitted by fraudulently incorporated medical clinics—that is, companies that fail to meet state licensing requirements that prohibit non-physicians from ...